Latin American and Caribbean region seen growing in crypto

Latin American and Caribbean region seen growing in crypto

The bear market may have been primarily affecting the global north.

The Latin American and Caribbean region, the LAC, is forecast to see significant growth from 2020 to 2022, according to a joint report published by the University of Cambridge and the Inter-American Development Bank.

A combination of 80 private companies and public sector institutions were surveyed between June and August last year, resulting in the report.

The analysis analyzed data from the Cambridge Fintech Ecosystem Atlas, a dynamic visualization of the crypto industry. In the year 2022, it gathered 175 companies in the region, of which 100 were headquartered or incorporated in LAC, and demonstrated that the crypto industry has more than doubled since 2016.

Although interest in crypto remained strong throughout the year, the report discovered that the motivations that driven investors have changed over the years.

In the past, speculation led the way, with responders answering that they were mostly driven by profiting from rising asset prices. Cryptocurrency is the most significant reason to buy crypto, resulting from inflation and devaluation, followed by remittances, and cross-border payments placed third.

According to the research, Brazil, Argentina, and Mexico are home to the largest number of crypto firms, with the first leading the way in the three main market sectors. These are exchanges, digital payment companies, and crypto custody solutions.

The research focus was on regulation, which is considered the main hindrance to a larger and more developed crypto industry in the region.

The first Bitcoin exchange in Chile was constructed alongside Ethereum's self-sovereign identity platform, uPort. He said the crypto industry is 'not very big' but is bullish on the ecosystem.

Although the number of new users may be decreasing, she said, the local industry is 'growing and getting stronger'. There's a push from Web3 builders to 'professionalize the industry' and get out of their niche, he said.

Sejas, who has been in the industry for six years, said she is stunned by how much talent exists in the ecosystem-- both in the region and globally. She added that Latin America can serve as a stress test before going global, because of the inherent challenges of an emerging region.

As for how things have changed since the report was studied last year, Junge stress that the crypto-currency crisis is very much ongoing. tsee many new companies wanting to enter crypto, he told Decrypt, although he offered optimism from another angle.

In the end, Junge said, 'It's a good time to talk to you about what you're going to do.